Why Is Omnicom (OMC) Down 11.4% Since Last Earnings Report?

Core Viewpoint - Omnicom's recent earnings report shows strong performance with both earnings and revenues exceeding estimates, despite a recent decline in share price [3][2]. Financial Performance - Omnicom reported Q3 2025 earnings of $2.24 per share, beating the consensus estimate by 4.2% and reflecting a year-over-year increase of 10.3% [3]. - Total revenues reached $4.04 billion, surpassing estimates by 0.4% and increasing 4% year over year, driven by a 2.6% rise in organic growth [3]. Revenue Breakdown - Advertising & Media revenues grew 9.1% organically, exceeding the estimated growth of 8.7% [4]. - Precision marketing revenues increased by 0.8%, below the expected 6.7% growth [4]. - Experiential revenues surged 17.7%, outperforming the anticipated 12.2% growth [4]. - Public Relations revenues fell by 7.5%, contrasting with the estimated growth of 1.3% [5]. - Healthcare revenues decreased by 1.9%, significantly better than the estimated decline of 34.1% [5]. - Branding & Retail Commerce revenues dropped 16.9%, worse than the estimated decline of 10.3% [5]. - Execution and support revenues increased by 2%, slightly below the estimated growth of 2.5% [5]. Regional Performance - Year-over-year organic revenue growth was 4.6% in the United States and 27.3% in Latin America [6]. - Revenues increased by 5.9% in the Middle East & Africa and 3.7% in the U.K. [6]. - Declines were noted in Other North America (2.4%), the U.K. (2.5%), Euro Markets & Other Europe (3.1%), and Asia Pacific (3.7%) [6]. Margin Analysis - Adjusted EBITA for the quarter was $651 million, a 4.6% increase year over year, with an adjusted EBITA margin of 16.1% [7]. - Operating profit decreased to $530.1 million, down 11.7% year over year, with the operating margin declining by 240 basis points to 13.1% [7]. Market Sentiment - Estimates for Omnicom have trended upward over the past month, indicating positive market sentiment [8]. - The stock has a subpar Growth Score of D, a Momentum Score of C, and an A grade for value, placing it in the top quintile for value investors [9]. - Omnicom holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11].